{"id":12175,"date":"2025-10-31T11:56:27","date_gmt":"2025-10-31T11:56:27","guid":{"rendered":"https:\/\/www.londonhouseexchange.com\/blog\/?p=12175"},"modified":"2026-01-21T13:01:37","modified_gmt":"2026-01-21T13:01:37","slug":"q3-2025-performance-announcement","status":"publish","type":"post","link":"https:\/\/www.londonhouseexchange.com\/blog\/q3-2025-performance-announcement\/","title":{"rendered":"Q3 2025 Portfolio Update"},"content":{"rendered":"\n

Below you will find our Q3 2025 performance announcement. This includes an LHX update, updated financial information on all properties, individual unit details, property disposals, dividends and other important information for investors. <\/p>\n\n\n\n

To ensure that all clients have the opportunity to consider this announcement, the Exchange will be suspended as usual, for 3 working days, re-opening at 10am on Wednesday 5 November 2025. <\/p>\n\n\n\n

Important upcoming dates <\/strong><\/p>\n\n\n\n

5 November<\/strong><\/td>LHX Exchange reopens for trading (10am)
Dividends for the month of October paid
Unit schedule updated to 31 October 2025<\/td><\/tr>
1 December<\/strong><\/td>November activity update published<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

Today\u2019s announcements<\/strong><\/p>\n\n\n\n

1. LHX update<\/strong><\/p>\n\n\n\n

2. Portfolio performance<\/strong><\/p>\n\n\n\n

3. Dividend distributions<\/strong><\/p>\n\n\n\n

4. LHX Mortgage Bonds<\/strong><\/p>\n\n\n\n

5. Shareholder votes<\/strong><\/p>\n\n\n\n

6. Members Voluntary Liquidations (MVLs)<\/strong><\/p>\n\n\n\n

7. Property development loans<\/strong><\/p>\n\n\n\n

8. Properties with fire safety issues <\/strong><\/p>\n\n\n\n

9. Upcoming quarterly announcements <\/strong><\/p>\n\n\n\n

<\/div>\n\n\n\n

1. LHX update<\/strong><\/h2>\n\n\n\n

The property team sold 41 residential units in Q3 2025, amounting to \u00a35.9m in property value. As a consequence \u00a33.3 million of mortgage finance was repaid across our residential portfolio during the last quarter, <\/strong>reducing interest costs across the portfolio, with the total portfolio mortgage loan-to-value (LTV) currently at 40.9%. <\/p>\n\n\n\n

Further student property sales have been finalised, with Ty Glyn, Bangor and Pierpoint St, Worcester having recently completed, as well as the final unit sales in large multi-unit residential blocks such as St David\u2019s Lodge, Hastings; which will now begin the voluntary liquidation process. <\/p>\n\n\n\n

We repaid another Mortgage Bond (Hammonds Landing) in October, with Bondholders achieving a total return of 11.1% on the amount repaid, and successfully completed another Bridging Finance investment (Newham, London); and have further offerings launching in the coming weeks and months – all eligible investors will be notified of the scheduled launch time and date and can find out more about the new product here: Bridging Finance Investments<\/a><\/p>\n\n\n\n

As ever we value your feedback, so please do not hesitate to get in touch with us via support@londonhouseexchange.com if you have any comments or questions. <\/p>\n\n\n\n

<\/div>\n\n\n\n

2. Portfolio performance <\/strong><\/h2>\n\n\n\n

Today (31 October 2025) we have published updated financial information for every property, including net income, mortgage details and the net cash position. You can find this information at the top of each property\u2019s respective investment page, in the \u2018Financials\u2019 section. <\/strong><\/p>\n\n\n\n

The \u2018Individual Unit Details\u2019 section<\/strong>, a tab within the \u2018Financials\u2019 section on each property\u2019s investment page that provides detailed information on a unit-by-unit basis, will be updated on 5 November to reflect the latest status of every unit and contracted rent for let units. This tab is updated monthly and allows you to track sales progress for all properties voted for sale as part of their 5-year anniversary sales process. <\/strong><\/p>\n\n\n\n

All information is updated to 30 September 2025.<\/em><\/p>\n\n\n\n

Residential portfolio unit status<\/em><\/strong><\/p>\n\n\n\n

The table below gives a summary of unit status by category across the residential portfolio at 30 September 2025. The changes exhibited over time continue to highlight the focus on selling residential units, as we seek to repay mortgages and fulfil shareholder mandates to sell properties following their 5-year anniversary votes.  <\/p>\n\n\n\n

Resi status<\/strong><\/td>Mar 2023 <\/strong><\/td>Jun 2023<\/strong><\/td>Sep 2023<\/strong><\/td>Dec 2023<\/strong><\/td>Mar 2024<\/strong><\/td>Jun 2024<\/strong><\/td>Sep 2024<\/strong><\/td>Dec 2024<\/strong><\/td>Mar 2025<\/strong><\/td>Jun 2025<\/strong><\/td>Sep 2025<\/strong><\/td><\/tr>
Let<\/td>336<\/td>308<\/td>267<\/td>252<\/td>224<\/td>204<\/td>182<\/td>167<\/td>138<\/td>129<\/td>118<\/td><\/tr>
To let: vacant<\/em><\/td>10<\/td>4<\/td>7<\/td>6<\/td>5<\/td>4<\/td>6<\/td>2<\/td>4<\/td>4<\/td>5<\/td><\/tr>
For sale: vacant<\/em><\/td>52<\/td>54<\/td>79<\/td>49<\/td>49<\/td>53<\/td>46<\/td>52<\/td>45<\/td>29<\/td>30<\/td><\/tr>
Under offer: vacant<\/em><\/td>44<\/td>60<\/td>53<\/td>77<\/td>81<\/td>76<\/td>76<\/td>64<\/td>73<\/td>81<\/td>49<\/td><\/tr>
Total current units<\/strong><\/td>442<\/strong><\/td>426<\/strong><\/td>406<\/strong><\/td>384<\/strong><\/td>359<\/strong><\/td>337<\/strong><\/td>310<\/strong><\/td>285<\/strong><\/td>260<\/strong><\/td>243<\/strong><\/td>202<\/strong><\/td><\/tr>
Sold<\/td>86<\/td>102<\/td>122<\/td>144<\/td>169<\/td>191<\/td>218<\/td>243<\/td>268<\/td>285<\/td>326<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

Rental performance<\/em><\/strong><\/p>\n\n\n\n

We have been proactively carrying out rent reviews across the portfolio, leading to improved rental performance over each of the last 12 months. While rental growth has slowed, across 118 tenanted residential units, contracted rent grew by 0.4% in the 12 months to the end of September 2025. It should be noted that we are not undertaking as many rent reviews as usual as we vacate units to sell, we are continuing to serve Section 13 notices (notice of rent increases) where possible.<\/p>\n\n\n\n

Residential Unit sales<\/em><\/strong><\/p>\n\n\n\n

There were 41 residential unit sales completed in Q3 2025, amounting to \u00a35.9m in property value. Across these completed unit sales, sales prices were on average 17.2% below their vacant possession value (VPV) and 9.0% below their purchase price. Of the residential units sold in this quarter, 30% were London flats, which sold on average 13.0% below purchase price, with the remaining 70% being regional properties, which sold for 7.2% below their purchase price. <\/p>\n\n\n\n

Clients can see the performance of agreed and completed sales in the Individual Unit Details of each property and on our Selling Record.<\/a><\/p>\n\n\n\n

Mortgage debt<\/em><\/strong><\/p>\n\n\n\n

The average interest rate across our mortgaged portfolio stands at 7.3%, which is unaffordable for the majority of residential properties. The cost of servicing mortgage debt erodes rental income and is the primary reason for dividend suspension across the portfolio. <\/p>\n\n\n\n

We are continuing to pay down mortgage debt wherever possible, predominantly through unit sales, and \u00a33.3 million of mortgage finance was repaid across our residential portfolio during the last quarter. The total portfolio mortgage loan-to-value (LTV) is currently 40.9%.<\/p>\n\n\n\n

<\/div>\n\n\n\n

3. Dividend distributions<\/strong><\/h2>\n\n\n\n

There have been no changes to dividends distributions this quarter. <\/p>\n\n\n\n

Dividends for the month of October 2025 will be paid 5 November.<\/p>\n\n\n\n

<\/div>\n\n\n\n

4. LHX Mortgage Bonds<\/strong><\/h2>\n\n\n\n

Following recent unit sales in Mortgage Bond properties during Q3 2025, there has been the partial repayment of capital and interest in one bond and full repayment of another:<\/strong><\/p>\n\n\n\n